Players in the marked lane spaces on a free throw

[splitveer]

This situation came up in a VG game the other night.

A1 gets fouled in the act of shooting as time expires in the half (there is no time on the clock). A1s coach asks if his players can occupy the marked lane spaces. I'm assuming to make her feel more comfortable.

The crew that night did not allow the players to occupy the lane spaces as the quarter has ended except for the free throws.

Did this crew handle this correctly?
What rules reference do you have?

I had a difficult time finding in the rules or case book what should exactly happen.